Flexible Spending Accnt Balances at Termination
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In the process of updating my Personnel Policy Manual I came across a sentence that I'm not sure is correct. Can somebody review and give me a yes or no - positively? Thanks ahead of time.
Termination of Health Care Account
"Expenses are NOT eligible for reimbursement after participation ends - even if there is an unused balance remaining in the Health Care Account." Is this a part of the Fed. Reg. for this program?
Don't know when this was added, but I don't believe it is correct. I know we HAVE been allowing employees to collect against the account - with the usual time stipulations.
This is the last section I have to update.
Thanks for your speedy responses.
I'm at [email]cwood@tcpud.org[/email]
Thanks again
Termination of Health Care Account
"Expenses are NOT eligible for reimbursement after participation ends - even if there is an unused balance remaining in the Health Care Account." Is this a part of the Fed. Reg. for this program?
Don't know when this was added, but I don't believe it is correct. I know we HAVE been allowing employees to collect against the account - with the usual time stipulations.
This is the last section I have to update.
Thanks for your speedy responses.
I'm at [email]cwood@tcpud.org[/email]
Thanks again
Comments
Also an ER should offer COBRA for the FSA which if accepted the ee would continue to pay the weekly,biweek, etc. amount and the plan would then continue until the end of that plan year.
Should the ee stop payments it will term as of date of last pymt and again the ee would have 90 days to submit receipts for payment as long as on or before this termination.
Are we confused yet? x:-/
"Expenses are NOT eligible for reimbursement after participation ends - even if there is an unused balance remaining in the Health Care Account." Is this a part of the Fed. Reg. for this program?"
P.S It should read, Expenses are NOT eligible for reimbursement if incurred AFTER participation ends.....
I've never heard about the continuation of an FSA through COBRA. Are you absolutely sure about this?
Keep in mind that only health care FSAs can be COBRA-ized. Dependent care FSAs can not.